Turkey’s incumbent telco has made a non-binding offer for 53% of local DTH firm Digiturk after the stake was seized by the government.
A Turk Telecom spokesman said its board of directors agreed to submit the offer in cash to “open the doors to…
Turkey’s incumbent telco has made a non-binding offer for 53% of local DTH firm Digiturk after the stake was seized by the government.
A Turk Telecom spokesman said its board of directors agreed to submit the offer in cash to “open the doors to negotiations”.
The stake is owned by Çukurova, a Turkish diversified holding company, but after it missed certain repayments the holding was brought under the control of the state’s Savings Deposit Insurance Fund (TMSF).
TMSF head Sakir Ercan Gul reportedly told Sky 360 television that the offer was for US$530m, and that an additional three to four other parties are also interested, including Turkish conglomerate Dogus Group.
Turk Telecom and Dogus were unable to comment.
Private equity firm Providence Equity Partners owns the remaining shares, and the Turk Telecom spokesman said the telco is open to buying the whole of Digiturk.
“It’s an option we will be looking at, but there’s no indication that Providence wants to sell,” he said.
Providence, which declined to comment, has been linked as a possible seller in the past, but also as a buyer of the shares it does not own.
The firm acquired its holding for around US$250m in 2006.
It and Çukurova have previously sought to divest the asset as early as 2011. Back then Digiturk was valued at around US$2bn.
Rival suitors that have been in the frame in the past include cable giant Liberty Global, French satellite TV broadcaster Canal+, and US-based media groups Time Warner and News Corp.
Founded in 2000, Digiturk won rights last year to broadcast Turkey’s top football league for a further three years. It broadcasts channels via satellite operators Turksat and Eutelsat.
